The $170 million bank deal backing the $450 million acquisition of Packaged Ice by Trimaran Capital Partners and Bear Stearns Merchant Banking already had three tickets in for the $135 million "B" loan last week, well ahead of the bank meeting. A banker familiar with the deal said the actual syndication will probably not launch until mid-July. He did not specify the level of subscription. The bank meeting had been postponed because the company is waiting on regulatory reviews, another banker explained. CIBC World Markets, Credit Suisse First Boston and Bear Stearns are leading the facility. CIBC and CSFB officials declined to comment. A Bear Stearns banker did not return calls.
The credit for the U.S. ice manufacturer and distributor also includes a $35 million revolver with price talk in the LIBOR plus 31/2% range. The "B" piece is priced at LIBOR plus 33/4%. Packaged Ice currently has an $88 million credit, which includes a $38 million revolver priced at LIBOR plus 31/2% and a $50 million term loan priced at LIBOR plus 4%. As of last March, the company had $11.9 million of availability under the facility, net of outstanding standby letters of credit of $7.4 million. CIT Business Credit and Ableco Finance are agent lenders on the existing deal. Trimaran and Bear Stearns Merchant Banking will be investing in the company as equal partners. CSFB and U.S. Bancorp Piper Jaffrey advised the Dallas-based company on the transaction. Steven Janusek, executive v.p. and cfo of Packaged Ice, did not return calls.